A free gift letter template for a home loan deposit, and what lenders need it to say.
Who is giving the money and their relationship to you, the exact amount, that it is a gift with no obligation to repay, and that the giver has no interest in the property.
Every giver signs and dates it, and it goes to the lender with bank statements showing the money leaving their account and arriving in yours. An inheritance is different: it needs the will or estate papers, not a gift letter.
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[Date] To whom it may concern Re: Gift to [Full name of recipient] for the purchase of property We, [Full name(s) of person(s) giving the gift], of [Residential address], confirm the following: 1. We are gifting the sum of AUD $[Amount] to [Full name of recipient], who is our [relationship, for example: daughter / son]. 2. The funds are being provided to assist with the purchase of a residential property, and may be applied toward the deposit, purchase costs or associated expenses. 3. The gift is unconditional and non-repayable. We do not expect repayment of any part of it, now or in the future. 4. We will not hold any interest, charge, security or claim over the property being purchased, and we will not be residing at the property. 5. The funds are ours to give, and come from [source of funds, for example: personal savings held with (bank) / proceeds of sale of (asset)]. 6. We are not borrowing these funds and no third party has any interest in them. Signed: _______________________________ _______________________________ [Name] [Name] Date: [Date] Date: [Date]
Before you use this. Many lenders issue their own gift letter form and will require that form rather than this one. Use this to understand what will be asked and to prepare the information in advance. Where the amount is significant, or where family circumstances are complicated, the people giving the gift should get their own legal advice before signing anything.
Charles Touma, Mortgage Broker.
A signed gift letter answers the question 'is this a loan'. It does not answer the separate question of genuine savings, which some lenders apply at low deposit levels and which looks for money accumulated over time.
A gift that landed last week may satisfy the first test and not the second. Where that applies, the options are a holding period, a lender whose policy accepts the gift as it stands, or rent history as a substitute.
Everyone whose money it is. Where the funds come from a joint account, both account holders sign. Where parents are gifting from a shared position, both sign.
A letter signed by one person for money belonging to two is the kind of small inconsistency that generates a request for clarification and costs a week.
Usually not for an ordinary gift letter, though some lenders require the form to be witnessed and a few ask for a statutory declaration.
Requirements differ, so it is worth confirming before arranging signatures. Where the sum is large, the people giving the gift may want their own legal advice regardless of what the lender requires.
They can, but it changes the assessment considerably. A loan is a liability, so the repayments count against your borrowing capacity and the lender will want the terms.
Many borrowers who intend a loan are better served by a family guarantee, which uses the parents' equity without money changing hands.
Sometimes, to verify the letter is genuine, which is a normal verification step rather than a sign of suspicion. It is worth telling whoever signs that they may receive a call, so it is not a surprise.
Not automatically. Genuine savings rules, where they apply, look for funds accumulated over time rather than a recent lump sum. Money held for a period commonly converts to seasoned funds, and some lenders accept rental history instead. It is a separate question from whether the gift itself is acceptable.
Yes, with the same letter plus provenance: evidence of the source and a documented transfer trail. Allow extra time, because international transfers take longer to clear and some lenders require a seasoning period once the funds land.
Charles can tell you what your specific lender will want to see, and whether genuine savings rules also apply to your file.
Prefer a callback?Charles calls back within one business day.
General information only, not credit, legal or financial advice. This is a starting point, not a legal document. Lender requirements differ and change, and some lenders provide their own form that must be used instead. Confirm what your lender requires before relying on any template.
Official sources for the figures on this page: Revenue NSW, First Home Buyers Assistance Scheme. Scheme rules change; the official pages are the final word. Checked against these sources on 12 October 2026.
